Vijayawada : The International Spirits and Wines Association of India (ISWAI), representing the premium alcoholic beverage industry, has lauded State governments for introducing progressive excise policies that modernize retail, boost transparency, and elevate consumer experiences while enhancing state revenues.
From Uttar Pradesh’s composite retail formats to Andhra Pradesh’s privatized model, and Rajasthan’s premium outlets in malls and airports, multiple states are reshaping the alcobev landscape. Madhya Pradesh, Haryana, Telangana, Karnataka, Odisha, and Uttarakhand have also embraced forward-looking policies—ranging from premium-only stores and Smart Liquor Stores to digital tracking and billing innovations.
Welcoming the positive change, Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), said, “The reforms we are witnessing across different states in India, signal a paradigm shift in how the alcobev sector is perceived and managed, and reflects the state governments positive intent and commitment. Progressive excise policies are not only improving compliance and transparency, but also creating the foundation for sustainable, consumer-centric growth.”
Uttar Pradesh’s FY 2025–26 policy targets ₹55,000 crore in revenue—a 10% increase year-on-year. Digitization efforts like e-lotteries for licenses have already yielded ₹2,250 crore, with license fees expected to add ₹4,200 crore. With retail outlets reduced from 12,000 to 9,000 composite vends, consumer access and operational efficiency are significantly enhanced.
“UP’s revenue has grown from ₹24,000 crore in FY18–19 to a target of ₹55,000 crore in FY25–26, reflecting a 13% CAGR. ISWAI members contribute over 55% to the state’s IMFL revenue. These reforms offer better infrastructure and a premium consumer experience,” Padhi noted.
Reforms also support vendors with two-year licenses, capped ownership, and streamlined operations—promoting fair competition and responsible consumption. States like Andhra Pradesh have seen ₹1,800 crore in revenue growth and a 37% rise in Scotch sales. Rajasthan’s landmark four-year policy has improved industry stability, with IMFL sales up by 55% since FY 2021.
Madhya Pradesh introduced single-bottle billing and stock carry-forward for premium brands, aiding traceability and reducing illicit trade. Similarly, Uttarakhand’s Smart Liquor Stores and other states’ premium formats are aligned with global best practices.
Padhi emphasized the need for pricing deregulation, stating, “Market forces should determine pricing. Removing controls will encourage investment and stronger revenue contributions.” ISWAI also urges more states to digitize systems, following examples set by Madhya Pradesh, UP, and West Bengal.